Fed announces details of new interbank service to support instant payments

Re:Fed announces details of new interbank service to support... by pfundstein on Sunday August 09, 2020 @08:57PM (#24104373)

That's a bit cynical. While I'm not saying that doesn't happen, I would say that smaller businesses typically accept cash-only to avoid the fees of accepting card payments. And this is not only the 1-2% transaction fee charged by (e.g.) Visa/Mastercard, these fees also include things like

* Fees for the rental and maintenance of payment card terminals.

* Gateway fees.

* Cost of fraud prevention services.

* Fees or premiums to insure against ‘forward delivery risk’

All of this erodes the already thin margins that small businesses typically operate at.

And then you have cash: no fees, instant payment, private.

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Re:Fed announces details of new interbank service to support... by Sander_Marechal on Monday August 10, 2020 @03:41AM (#24106614)

Most of those fees don't apply to e.g. Europe. It's pretty much just hardware (starts at 30 euro or so for the cheap versions) and some transaction costs (1.5% or less, depending on volume). It's often cheaper to accept electronic payments than cash. Handling cash costs money (bank deposits, buying change, vaults, cash registers, higher insurance cost).

Even street and marker vendors in The Netherlands accept electronic payments.

[ Parent | on HN ]